Jack Kenny
Tether is fine. There is nothing wrong with what they were doing. The entire principle of the coin is to print more tethers as more people invest in them. People are buying the tethers for $1 so ofcourse the company can afford to back each tether by $1 because when you buy the tether YOU PAY THE COMPANY $1. What is the problem here. How could they possibly not afford to do this. As for the extra $30M, $30M is chump change for a multi billion dollar currency. They would have earned profits by investing all the $ they are holding in order to back up the tethers. Normal Banks accept losses like this all the time when their security fails and customers don’t take proper care of their pins, etc.
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Why’s ur volume so low? It’s very difficult to hear anything u saying….VOLUME bro
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Tens of DU
One day we won’t need to link the value to fiat because fiat won’t exist =)
West Oz Cards
Tether actually states on its website that it has NO legal obligation to trade back your Tether for real currency. That’s extremely alarming.
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Grant Huie
You’re the kind of youtuber where you need to look for the real channel because your sub to quality ratio is way out of wack! Great job man just subscribed and turned on notifications, keep it up.
Tens of DU
It doesn’t matter if Tether is “backed” by the US Dollar. It is better if they aren’t.
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The world runs on fractional reserve banking. The US regulations stipulate that banks must hold just 7% of a given loan (typically). This allows for greater liquidity and growth but makes catastrophic collapses possible if people panic and a whole bunch of people want to withdraw funds simultaneously. Then they have the federal reserve print money as needed to keep the inflation rate where they want it. If you understand how the banking system works then you understand that Tether is merely acting in precisely the same manner (necessarily). I’m not saying fractional reserve is a good system – I’m actually opposed to it – but this is standard practice in the banking world.
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